First-quarter profit margins dropped from 9.4% last year to 2.8% this year.

Revenue at the cosmetics manufacturer slipped 2% during the quarter, falling to $2.56 billion, led by a 2% fall in sales of personal care products. Skin care and beauty product sales both edged down 1%.

The company attributed the earnings decline, in part, to increased manufacturing costs and charges relating to its on-going restructuring plan.

In April, Avon spurned an informal $10 billion acquisition offer from Coty, which has indicated that it remains interested in pursuing discussions.

Last December, Andrea Jung stepped aside as CEO in the wake of declining sales and earnings. Sherilyn McCoy assumed CEO duties last month.